AmCham Proposes to Yoon Seok-yeol: "Labor Flexibility and Easing Foreign Inheritance Tax Regulations Needed"

One-on-One Meeting with People Power Party Presidential Candidate Yoon Seok-yeol
Discussed Foreign Investment Attraction, Korea-Japan Relations, and Gender Issues

[Asia Economy Reporter Hwang Yoon-joo] The American Chamber of Commerce in Korea (AMCHAM) made proposals to Yoon Seok-yeol, the presidential candidate of the People Power Party, regarding labor flexibility and the easing of inheritance tax for foreign business owners. Labor flexibility is one of the issues continuously demanded by foreign companies that have established corporations in Korea. Previously, Lee Jae-myung, the presidential candidate of the Democratic Party of Korea, also requested labor flexibility during his visit.

James Kim, Chairman and CEO of AMCHAM, held a "Special Meeting with Presidential Candidate Yoon Seok-yeol" on the 28th at the Conrad Hotel in Yeouido, Seoul, stating, "The most frequently discussed topic at AMCHAM is the lack of labor flexibility," and added, "When business conditions worsen, companies need to reduce their workforce, but maintaining employment and the 52-hour workweek is difficult."

Candidate Yoon said, "I believe the reason the United States led the Third and Fourth Industrial Revolutions is because it is the country with the highest labor flexibility in the world," and added, "If a country focuses on low-productivity traditional industries, it cannot advance as a developed nation."

He pointed out, "In Korea, strong labor unions have dominated the labor market, but I think it is difficult to avoid a major upheaval," and said, "Politically, this (strong labor unions) causes complex problems, and labor unions have a significant influence in elections."

He continued, "From the perspective of the people's interests, institutional changes for labor market flexibility will be properly implemented during the progress of the Fourth Industrial Revolution," and added, "If I am in charge of the next government, I plan to create major changes through a grand compromise with labor unions."

Chairman James Kim said, "In the U.S. (foreign) companies, regardless of workforce reduction, it is possible to work as much as one wants even when getting older," and expressed concern, "In Korea, there is a strong belief that one must retire upon reaching the retirement age."

AMCHAM also proposed lowering inheritance tax for foreign business owners. Chairman James Kim lamented, "If a foreign business owner residing in Korea dies, they must pay inheritance tax the same as Koreans," and added, "Korea has the highest inheritance tax rate in the world."

Candidate Yoon responded, "Korea has high corporate tax rates, making it difficult to be an attractive investment destination," and said, "Tax reductions are necessary as incentives to attract foreign companies."

He further emphasized, "The inheritance tax issue can be sufficiently coordinated through consultations between the tax authorities of both countries," and said, "If I take office in the next government, when American businesspeople come to Korea for economic activities and pass away, our tax authorities will consult with the U.S. tax authorities to ensure taxes are paid on the lower side."

In addition, Chairman James Kim and Candidate Yoon discussed a wide range of topics from diplomacy and security, including Korea-Japan relations, the Korea-U.S. alliance, and gender issues, to social issues related to Yoon’s policies.

This content was produced with the assistance of AI translation services.